Boral Ltd.

Boral — H1 2010 Earnings Presentation

13 slides from Boral's earnings presentation, Feb 10, 2010

  1. Slide 1: Boral Limited Results for the half year ended 31 December 2009

    Boral Limited Results for the half year ended 31 December 2009 10 FEBRUARY 2010 MARK SELWAY, CHIEF EXECUTIVE Agenda 1. Results Overview Mark Selway 2. New Reporting Segments Mark Selway 3. Market Performance Ken Barton 4. Financial Performance Ken Barton 5. First Impressions Mark Selway 6. Outlook M

  2. Slide 2: 1H FY2010 Financial Highlights

    Results Overview MARK SELWAY, CHIEF EXECUTIVE 3 1H FY2010 Financial Highlights (Continuing Operations) Revenue Gearing (D/E) $2.3bn down 10% 44% down from 79% Profit after tax Earnings per share $68m down 9% 11.4c down 11% Cash from operations Interim dividend $196m up 39% 7.0c down 7% Net debt $1.2

  3. Slide 3: Australian Construction Materials and Cement Division

    Australian Construction Materials A$m 1H10 1H09 %∆ Share of External Revenues QEU 2% Sales 1,082 1,161 (7) Asphalt Concrete EBITDA 155 144 8 33% 45% EBIT 107 95 12 ROFE1 % 17.6 15.4 Quarries 20% QUARRY product for the ASPHALT for the CONCRETE for the Port QEU communities Gorgon Project WA SAFElink p

  4. Slide 4: Building Products and USA

    Building Products A$m 1H10 1H09 %∆ Share of External Revenues Asia LBGA2 Bricks Sales 608 611 (1) 16% 20% EBITDA 74 66 13 Roofing 9% EBIT 45 38 21 Masonry Plasterboard 8% ROFE1 % 4.5 6.6 27% Timber 20% Pinkenba PLASTERBOARD Lightweight BLOCKS, New MASONRY plant Hardwood TIMBER, plant, QLD Sydney Cri

  5. Slide 5: Construction Related Businesses; Market Performance

    Construction Related Businesses A$m 1H10 1H09 %∆ Share of External Revenues Sales 197 223 (12) Windows Scaffolding 39% 18% EBITDA - 8 (104) EBIT (5) 4 (239) Concrete Placing ROFE1 % (7.1) 1.8 34% Precast Concrete 9% Dowell WINDOWS FORMWORK & SCAFFOLDING CONCRETE PLACING, PRECAST solid progress Shopp

  6. Slide 6: Improving Australian conditions offset by further declines in the USA

    Improving Australian conditions offset by further declines in the USA Market changes – 1H 2010 vs 1H 2009 +65% 40% Australia Commercial & industrial 40% Social & Extraordinary approval ‘bubble’ in institutional 1H10 for schools programs -25% 4% -1% Roads, -25% -25% Dwellings 1 Non-dwellings 2 highwa

  7. Slide 7: US housing market has experienced the worst downturn since the Great Depression

    US housing market has experienced the worst downturn since the Great Depression Total US dwelling starts (‘000)1 1,500 1,000 2,600 500 2,400 2.2m starts 0 2008 2009 2010 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 570k starts 200 0 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 198

  8. Slide 8: Financial Performance: Profit after tax down 9% to $68m

    Financial Performance KEN BARTON, CHIEF FINANCIAL OFFICER 15 Profit after tax down 9% to $68m in 1H FY2010 A$m 1H2010 1H2009 %Δ Revenue 2,330 2,594 (10) EBITDA 259 285 (9) EBIT 133 155 (15) Net interest (49) (69) 29 Profit before tax 84 86 (3) Tax (15) (11) (35) Profit after tax 68 75 (9) 16 8

  9. Slide 9: Revenues down 10% on volume pressures; margins maintained

    Revenues down 10% on volume pressures; margins maintained through disciplined price and cost reduction outcomes Sales Revenue ($m) EBIT ($m) EBIT / Sales 2,800 200 10% 2,400 8% 150 2,000 6% 1,600 100 1,200 4% 800 50 2% 400 0 0 0% 1H09 2H09 1H10 1H09 2H09 1H10 1H09 2H09 1H10 17 Through disciplined pr

  10. Slide 10: Pricing and volume by business; revenue and EBIT by division

    While disciplined pricing has continued in most businesses, we will continue to protect our position in response to local/import competitive pressures 1H10 v 1H09 Δ: Prices / Volume  Cement  Concrete & Quarries Australia  Asphalt  Bricks  Roofing  Masonry  Plasterboard  Timber  Windows  Br

  11. Slide 11: Cash generation improved 39%; gearing fell to 44%

    Cash generation improved 39% to $196m whilst gearing fell to 44% against the 79% December 2008 half year As at Dec-09 Dec-08 June-09 A$m Cash flow from operating activities1 196 141 419 Net debt 1,245 2,184 1,514 Net debt / equity 44% 79% 55% Net debt / (net debt + equity) 31% 44% 35% EBIT interest

  12. Slide 12: First Impressions

    First Impressions MARK SELWAY, CHIEF EXECUTIVE 23 First impressions of the Boral group and immediate priorities First impressions  Well managed business  Constrained by the world economy  Strategic choices well executed,  US losses continue significant potential  Costs reduced, disciplined pric

  13. Slide 13: Outlook for 2010

    Outlook for 2010 Australian  Moderately improved trading in Concrete, lower earnings from Asphalt and Quarries Construction  QEU remains on track to deliver a $25m-$30m profit Materials Cement  Moderate reduction in volumes will place pressure on pricing and margins  Progress in volume, plant ut

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